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Distinguish between depreciation policy and the concept of depreciation?
Wiki User
∙ 9y ago
Depreciation policy is management thing that what depreciation method to use and how much depreciation to charge to each asset.
Depreciation concepts are concepts which govern the depreciation process which management cannot change they are universal rules to follow depreciation that how straight line depreciation work etc.
Wiki User
∙ 9y ago
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How can a homeowner get recoverable depreciation money from a home owners claim?
You Can't. When we buy home owners insurance we basically have two options for the coverage type.1. RCV, Replacement Value2. ACV, or depreciated ValueIf you purchased an RCV ( replacement ) policy then the company will pay the amount needed to either repair or replace the property within the policy limits you purchased..If you purchased an ACV (depreciated Value) policy then they will pay the amount needed to repair the property or they will pay you the depreciated cash value of the property if not repairable whichever is less and within policy limits.
What is the distinction between accounting policies and accounting basis?
A layman's answer. Policies provides guidance on how something is handled, judged, rated, ranked, executed, etc. Policy provides all concerned with direction on how to proceed. Example: my policy is to answer all questions in a layman's term. Basis amounts to "what is", or "to be", developed in order to comply with policy. For instance; the basis for our nation's policy on ransom is that to allow payment for acts involving hijacking/terrorism has been shown to encourage further activity of this nature. Our policy is to not pay ransom since it might contribute to further hijacking/terrorism acts. In accounting, such an example would be written as such: accounting policy allows for us of a two-year verses five-year depreciation schedule on the purchase of capital equipment. The accounting basis for this policy is that it would 1) decrease tax burden in the short term 2) retaining more company funds for use in capital improvements while 3) encouraging expenditure to expand the economy 4) providing job growth to 5) stimulate the economy.
What substantive procedure would you perform in the audit of assets and liabilities?
ASSETS Audit to address the various audit assertions including: existence, complteness, rights and obligations, valuation and disclosure. ASSERTION PROCEDURE General Obtain a schedule showing movements in assets for the yearCast the schedule, and agree total to the trial balance and the financial statements Agree figures to the asset register ExistencePhysically inspect the assets to ensure existence Rights and obligations/existence Inspect title deeds or deeds of transfers to ensure that the assets are in the name of the entity Inspect insurance contracts to ensure the assets are insured in the name of the entity Select a sample of asset additions from the ledger for assets and trace them to supplier invoices to confirm prices Rights and obligations, valuation, and authorisation Trace these assets to order, grn and the payment cheque to confirm receipt, and validity as well as value Enquire from management as to accounting for property plant and equipment Apply the accounting policy to assess if the assets are accounted for in terms of the entity policy # If policy is revalue assests ensure assets are carried at revalued cost less accumulated depreciation otherwise carry at cost less accumulated depreciation # Obtain schedules for deprciation calculation and cast and cross cast the file to ensure accuracy # Review the schedule to ensure that correct rates of depreciation have been applied per category as per accounting policy and recalculate depreciation expense.
What is the difference between policy and goal?
Policy refers to rules established by the organization. Goals are milestones companies try to achieve in order to align with the strategy of the organization.
What type of accounting disclosure is required if consistency concept is not applied?
In accounting the consistency concept means that when a method of accounting is adopted it must be used consistently in the future. If the policy for accounting is changed in any way the nature of the change, the effects the change has on items in the financial statement and the reason for making the change must be fully disclosed by the business. If the consistency concept is not applied then disclosure of changes are made at the discretion of the business.
What is non recoverable depreciation?
It is the depreciation amount that is not covered by the policy. Polices that are based on ACV (Actual Value), rather than RC (Replacement Cost) do not cover value lost due to depreciation.
What is the concept of dividend policy in multinational firms?
concept of dividend policy
Does Arkansas homeowners insurance laws have a depreciation on roofs Years ago in Arkansas there was no depreciation on homeowner policies for the roofs just wondering if that was still law?
As of now, Arkansas does not have a specific law mandating depreciation on roofs in homeowner insurance policies. However, individual insurance companies may have their own policies regarding depreciation of roofs. It is important to check with your insurance provider for specific details about your coverage.
What is similarities and difference between Roosevelt Policy Wilson Policy and HowardTaft Policy?
They had the same concept that American business and financial interest should achieve an active international status
What is non standard commercial risk?
distinguish between a "standard" commercial risk and a "non standard" commercial risk in a fire policy
What is non-recoverable depreciation?
Non-Recoverable depreciation is depreciation that is not recoverable, that is the obvious answer. In most states a standard Replacement Cost Policy will pay an insured for the replacement cost minus deprecation. As long as you replace the item within a specified amount of time which is typically anywhere from 90 days to a year, you will be able to recover the amount that was depreciated. In a Actual Cash Value type policy this depreciation is NOT recoverable. It is very important to know what type of policy you have before you need it!
CONCEPT OF CASHLESS POLICY INTRODUCED BY THE CBN IN NIGERIA?
Yes, the concept of cashless policy was introduced in NIGERIA.
Is there a law in North Carolina that the insurance company can't pay you for depreciation of your vehicle after it was damaged by a flood?
I doubt if it is a law, but the terms of the policy you bought. Most do not pay for depreciation, just the damage. You will get the difference between what the car was worth before the flood damage and its value after, less your deductible.
Are driveways non recoverable depreciation?
Just depends on the policy type, language and exclusions on your policy. Your Insurance Agent will be the best source for answers to coverage questions on your policy.
What is Nature and concept of business policy?
what is the concept and nature of corporate policies
Can you charge depreciation at building according to international accounting standard?
Yes, you can. It also depends on company's policy.
Does depreciation apply under a reinstatement condition of a fire policy?
Each insurance company is different and its possible they do. Call your agent or broker to get a better answer.
